Gas

VLGC orderbook-to-fleet ratio has more than doubled since October

Photo of Sam Chambers Sam ChambersJune 1, 2021
941 Less than a minute

The VLGC orderbook-to-fleet ratio has more than doubled since October last year with analysts questioning whether there will be enough demand growth to absorb the upcoming deluge of new gas ships.

Data from Cleaves Securities shows the VLGC orderbook now represents 23% of the existent fleet, up from 11% in October.

There have been 36 VLGC newbuildings ordered so far in 2021 compared to just three during the same time last year.

Cleaves said in a weekly report that it was “concerned” for VLGC earnings come 2023 and 2024 with 12-14% net fleet growth per annum versus 4-6% demand growth.

Cleaves is predicting the VLGC cycle will peak next year.

Photo of Sam Chambers Sam ChambersJune 1, 2021
941 Less than a minute
Photo of Sam Chambers

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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